Uinta County School District No. 1 recently underwent a rigorous retooling of health insurance benefits for retiring employees.

Superintendent Dennis Wilson said in June the school board took action to eliminate the option of health insurance for retirees at the end of the school year.

“If the employee retires during this school year, they will have the benefit to keep their insurance through the district and they will be required to pay the premium. If the employee retires after the school year, they will have the opportunity to buy into the district insurance,” Wilson said.

He said now employees who retire from the district have the opportunity to keep their health insurance on the district plan, yet they pay the premiums.

“That’s the way it has been for a long time,” said Wilson.

Wilson said problems arose when the IRS established a standard reporting system for local and state entities to follow in regards to their liabilities for health and insurance benefits that will be paid to retirees.

He said Governmental Accounting Standards Board 45 was issued because there was growing concern that the costs of government employer obligations for post-employment benefits were soaring.

Under the new IRS regulation, local, state and federal agencies will be required to reveal benefit costs in current and future budget reports.

The numbers are reported every two years.

“Last year was the first year that Uinta District 1 was required to do an audit of costs. The response was that the district had a liability related to benefits of over $700,000. The $700,000 includes all current employees, all retirees that were part of the insurance and also BOCES employees,” Wilson said.

He said BOCES is part of the insurance plan; however, they pay their own premiums.

“The board discussed what to do about the liability. They could do nothing about it, but every two years, when they submit the GASB 45, the liability would keep going up,” Wilson said.

The school board had conversations in May about the option to do nothing about implementing the new regulation.

Wilson said he has received conflicting answers on whether there would be negative impact to the district if they did nothing.

Since there has been concern from staff members regarding the new regulation, the insurance committee, made up of two to three administrators and two representatives from every school, is trying to find out how to solve the GASB 45 issue by looking for options that are available so that retirees of the district may have health insurance.